LUCITA P.

REYES
Executive Director
Industry Development Group
Board of Investments

 E.O. 226 Omnibus Investments Code of

1987, as amended
2012 Investment Priorities Plan
R.A. 9513 - Renewable Energy Act of 2008

 To qualify for BOI registration, the proposed activity

must be in the Investments Priorities Plan (IPP).
RE development is declared a priority investment
activity that will regularly form part of the annual IPP,

unless declared otherwise by law.

Regular List:
1. Agriculture/ Agri-business and Fishery
2. Creative Industries/Knowledge-Based Services
3. Shipbuilding
4. Mass Housing
5. Iron and Steel

Renewable Energy ( under R.A. 9513 RE Act 2008)

Ecological Solid Waste Management

Tourism

6. Energy
7.

8.
9.
10.

11.
12.
13.

Infrastructure
Research and Development
Green Projects
Motor Vehicles
Strategic Projects
Hospital/Medical Services
Disaster Prevention, Mitigation & Recovery
Projects

COVERAGE

POWER PROJECTS QUALIFIED

FOR ITH ENTITLEMENT

exploration, development,
and/or utilization of energy
sources adopting
environmentally-friendly
technologies

Only power plants utilizing

environmentally-friendly
energy sources and
technologies

PROJECTS EXEMPTED FROM

NVA REQUIREMENT

PROJECTS QUALIFIED FOR

REGISTRATION

Projects that utilize raw

materials or semi-processed
raw materials that are not
locally produced or not in
sufficient quantity

Only projects that have

achieved financial closing

Other Qualifications
For power generation projects, only revenues from power
generated and sold to the grid, other entities and/or
communities may be entitled to ITH.
Power projects contiguous to existing generating facilities
considered as expansion projects; if the existing base load
plant has consistently dispatched at least 80% of their
registered capacity for the past 3 years, project may be
considered new.
ITH shall not exceed 10% of the total revenue of generated
power.
DOE endorsement

Other qualifications for PIONEER status:

Power supply projects located in missionary areas or
off-grid areas not receiving subsidies from PSALM
With projects cost of at least the peso equivalent of

US$1.5 million per megawatt;

Projects with NVA of at least 30%

INCENTIVE
Income Tax Holiday
(ITH)

4 6 years (max of 8 years)

ITH Bonus

3 years provided the firm meets certain conditions

Importation of Capital Equipment, Spare

Parts and Supplies (Under E.O. 70)

0% duty-free

Wharfage Dues and Export Tax, Duty,

Impost and Fees

Exempted

Simplification of Customs Procedures

Available

Employment of Foreign Nationals

Foreign nationals may be employed in supervisory,

technical or advisory positions within 5 years from a
projects registration, extendible for limited periods.
The positions of president, general manager, and
treasurer or their equivalents, of foreign-owned
registered firms may be retained by foreign nationals
for a longer period.
All foreign employees may bring with them their
spouses and unmarried children under 21 years of
age.
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(Under the Mandatory List of the 2012 IPP)

Approval: December 16, 2008

Effectivity: January 30, 2009
Nationwide consultation on the drafting of the RE Act IRR
IRR Effectivity: June 12, 2009
Coverage: Biomass, Solar, Wind, Geothermal, Ocean, Hydro
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Mandatory List: RE
RE Sources
Geothermal
Hydro
Wind
Solar
Ocean
Other RE Sources
Biomass
Biofuels

RE facilities including
hybrid system
RE equipment/
components

Feedstock/biomass for
biofuel

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1.
2.
3.

4.
5.

6.
7.
8.
9.

For RE Developer
7-year Income Tax Holiday (ITH).
10-year Duty-free Importation of RE
machinery, equipment and materials
Special tax rates on realty and other taxes
on civil works, equipment, machinery.
Net Operating Loss Carry-Over (NOLCO)
Corporate Tax Rate of ten percent (10%)
on net taxable income after seven (7)
years of ITH
Accelerated Depreciation.
Zero Percent Value-Added Tax Rate
Tax Exemption of Carbon Credits
Tax Credit on Domestic Capital Equipment
and Services. - value-added tax and
custom duties
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For RE Equipment Manufacturers

1. Tax and Duty-free Importation of
Components, Parts and Materials
2. Tax Credit on Domestic Capital
Components, Parts, and Materials
3. 7 years Income Tax Holiday from
the date of
recognition/accreditation
4. Zero-rated Value Added Tax
Transactions

Note: Items in bold font are incentives

administered by BOI

REGISTRATIONS OF PROJECTS
RE Developer

RE Commercialn

DOE
Registration

DOE
Accreditation

BOI
Registration

BOI
Registration

BOI registration is required to qualify for

availment of incentives
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INCENTIVES AVAILMENT

Application

DOE
Issuance of Endorsement
(per transaction basis)

Endorsement

RE Developers/Equipt
Manufacturers
BIR

BOI
Incentives Administration
(Issuance of
Certifications)
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BOC

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Due diligence assistance

Information support

Visit program development & investment briefing

Business matching
Business registration facilitation
Fast tracking of applications for registration
Assistance with Local Government Unit (LGU) requirements
Aftercare Service
Presence of government network to quickly respond to
concerns
Supervision & monitoring

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